Wednesday, 14 January 2009

Sterling Euro rate remains stable ahead of ECB Rate decision

This mornings trading has seen the Sterling/Euro rate remain reasonably stable losing just 0.2% at the time of writing this report ahead of what could be a big market mover at 12:45 tommorow.

There will have already been investors guessing on what they believe will happen, as the markets do move on rumour as well as fact, I believe that the ECB will follow the UK's decision and cut by 50 basis points.

Should they decide to cut by more than expected then the Euro should become weaker, and less than expected one would expect the Euro to gain back some of the ground lost over the past two weeks.

An interest rate cut generally has a negative effect on the currency concerned and a hike a s positive one, as investors look to move their funds over to a higher yielding currency.



This is a brief summary of todays report. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me

www.currencies.co.uk


Have a great day and thanks for reading!

Daniel Wright

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